Q5- Week 10
You are the audit partner at Parkville & Associates, a mid-tier
audit firm. You are responsible for the
audits of the following four independent entities for the year
ended 30 June 2018:
(a) Human Help Ltd is a non-profit entity. You have discovered that
it has not kept substantiating
vouchers or receipts for more than 55 per cent of its expenses,
excluding salaries and allowances
(2.5 marks)
(b) JJ King Ltd is a building contractor with a varying workload.
In order to compensate for the
irregularity of its contracted building projects, JJ King also
purchases large vacant blocks of land
that it later subdivides for the construction of houses and units.
JJ King then sells these on its own
account. Your analysis strongly suggests that the apportionment of
costs to houses and units sold
has been kept low to boost profits. In your opinion, this has
resulted in the overvaluation of the
unsold properties. The directors of the company do not agree and
hold to their view that the stock
of properties is correctly valued (2.5 marks)
(c) You have completed the audit of Grand Resort Ltd (Grand Resort)
for the year ended 30 June 2015.
The audit partner suggested that the value of properties on the
Gold Coast were overstated by
$16 million, a figure which was twice the level of materiality set
for the audit. As a result of
discussions with the audit committee, the CEO of Grand Resort
agreed to revise the valuations
downward by $10 million. All other issues were resolved to the
satisfaction of the audit partner,
resulting in an overall misstatement of the financial report of $6
million. The audit partner is now
considering the effect of the misstatement on the auditor’s report.
(2.5 marks)
(d) Grand Event Ltd arranges for popular overseas entertainment
artists to perform in Australia. The
band Eclipse was booked by Grand Event to play in major cities
across the country. Grand Event’s
written contract required the company to pay the band in US dollars
but, in order to reduce costs,
it did not hedge the amounts. Subsequent to year end, the
Australian dollar fell against the US
dollar and a substantial loss relating to the band’s tour was
predicted. The management of Grand
Event tried unsuccessfully to renegotiate the band’s contract and
has been unable to obtain
finance to cover the expected shortfall. Grand Event has now
cancelled the tour and expects a
substantial claim from Eclipse. It is clear to you, as the auditor,
that Grand Event does not have
the income, cash or other assets to sustain such a loss. (2.5
marks)
Required:
Assuming no amendments have been made, identify and explain the
type of auditor’s opinion required
for each issue outlined above. (10 marks, maximum 300 words)
| Issues | Audit Opinion (1 mark) | Explanation (1.5 marks) |
| (a)(/(b)/ Write 1 line about issue |
Unqualified or Qualified or Adverse or Disclaimer Audit Opinion or Unqualified Audit opinion with emphasis of matter or Unqualified Audit Opinion with other matter paragraph |
Here you will mention about why you have chosen this audit opinion and reason details |
In: Accounting
Q5- Week 10 You are the audit partner at Parkville & Associates, a mid-tier audit firm. You are responsible for the audits of the following four independent entities for the year ended 30 June 2018: (a) Human Help Ltd is a non-profit entity. You have discovered that it has not kept substantiating vouchers or receipts for more than 55 per cent of its expenses, excluding salaries and allowances (2.5 marks) (b) JJ King Ltd is a building contractor with a varying workload. In order to compensate for the irregularity of its contracted building projects, JJ King also purchases large vacant blocks of land that it later subdivides for the construction of houses and units. JJ King then sells these on its own account. Your analysis strongly suggests that the apportionment of costs to houses and units sold has been kept low to boost profits. In your opinion, this has resulted in the overvaluation of the unsold properties. The directors of the company do not agree and hold to their view that the stock of properties is correctly valued (2.5 marks) (c) You have completed the audit of Grand Resort Ltd (Grand Resort) for the year ended 30 June 2015. The audit partner suggested that the value of properties on the Gold Coast were overstated by $16 million, a figure which was twice the level of materiality set for the audit. As a result of discussions with the audit committee, the CEO of Grand Resort agreed to revise the valuations downward by $10 million. All other issues were resolved to the satisfaction of the audit partner, resulting in an overall misstatement of the financial report of $6 million. The audit partner is now considering the effect of the misstatement on the auditor’s report. (2.5 marks) (d) Grand Event Ltd arranges for popular overseas entertainment artists to perform in Australia. The band Eclipse was booked by Grand Event to play in major cities across the country. Grand Event’s written contract required the company to pay the band in US dollars but, in order to reduce costs, it did not hedge the amounts. Subsequent to year end, the Australian dollar fell against the US dollar and a substantial loss relating to the band’s tour was predicted. The management of Grand Event tried unsuccessfully to renegotiate the band’s contract and has been unable to obtain finance to cover the expected shortfall. Grand Event has now cancelled the tour and expects a substantial claim from Eclipse. It is clear to you, as the auditor, that Grand Event does not have the income, cash or other assets to sustain such a loss. (2.5 marks) Required: Assuming no amendments have been made, identify and explain the type of auditor’s opinion required for each issue outlined above. (10 marks, maximum 300 words) Issues Audit Opinion (1 mark) Explanation (1.5 marks) (a)(/(b)/ Write 1 line about issue Unqualified or Qualified or Adverse or Disclaimer Audit Opinion or Unqualified Audit opinion with emphasis of matter or Unqualified Audit Opinion with other matter paragraph Here you will mention about why you have chosen this audit opinion and reason details
In: Accounting
You are the audit partner at Parkville & Associates, a mid-tier audit firm. You are responsible for the audits of the following four independent entities for the year ended 30 June 2018: (a) Human Help Ltd is a non-profit entity. You have discovered that it has not kept substantiating vouchers or receipts for more than 55 per cent of its expenses, excluding salaries and allowances (2.5 marks) (b) JJ King Ltd is a building contractor with a varying workload. In order to compensate for the irregularity of its contracted building projects, JJ King also purchases large vacant blocks of land that it later subdivides for the construction of houses and units. JJ King then sells these on its own account. Your analysis strongly suggests that the apportionment of costs to houses and units sold has been kept low to boost profits. In your opinion, this has resulted in the overvaluation of the unsold properties. The directors of the company do not agree and hold to their view that the stock of properties is correctly valued (2.5 marks) (c) You have completed the audit of Grand Resort Ltd (Grand Resort) for the year ended 30 June 2015. The audit partner suggested that the value of properties on the Gold Coast were overstated by $16 million, a figure which was twice the level of materiality set for the audit. As a result of discussions with the audit committee, the CEO of Grand Resort agreed to revise the valuations downward by $10 million. All other issues were resolved to the satisfaction of the audit partner, resulting in an overall misstatement of the financial report of $6 million. The audit partner is now considering the effect of the misstatement on the auditor’s report. (2.5 marks) (d) Grand Event Ltd arranges for popular overseas entertainment artists to perform in Australia. The band Eclipse was booked by Grand Event to play in major cities across the country. Grand Event’s written contract required the company to pay the band in US dollars but, in order to reduce costs, it did not hedge the amounts. Subsequent to year end, the Australian dollar fell against the US dollar and a substantial loss relating to the band’s tour was predicted. The management of Grand Event tried unsuccessfully to renegotiate the band’s contract and has been unable to obtain finance to cover the expected shortfall. Grand Event has now cancelled the tour and expects a substantial claim from Eclipse. It is clear to you, as the auditor, that Grand Event does not have the income, cash or other assets to sustain such a loss. (2.5 marks) Required: Assuming no amendments have been made, identify and explain the type of auditor’s opinion required for each issue outlined above. (10 marks, maximum 300 words) Issues Audit Opinion (1 mark) Explanation (1.5 marks) (a)(/(b)/ Write 1 line about issue Unqualified or Qualified or Adverse or Disclaimer Audit Opinion or Unqualified Audit opinion with emphasis of matter or Unqualified Audit Opinion with other matter paragraph Here you will mention about why you have chosen this audit opinion and reason details
In: Accounting
Read and review chapter 31
Analyze the following case study and answer the
question bellow
CASE STUDY
Mrs. Angstrom is an 83-year-old patient who was
admitted to the hospital after she fell outside her home and broke
her hip. She has been living alone in her apartment since her
husband died 4 years ago. Mrs. Angstrom has no long-term history of
mental illness, but she has recently shown signs of cognitive
impairment and dementia, according to her neighbor Jeanine Finch,
63, who called 911 after Mrs. Angstrom’s fall. “She wanders around
outside sometimes and doesn’t always know how to get back home,”
says Mrs. Finch. “My husband and I try keep an eye out for her, but
we’ve been worried something like this might happen.”
Mrs. Angstrom will need to undergo surgery tomorrow
morning. The nurse on shift, Greg, is new at the hospital and
surprised when the supervising RN asks him to discuss advance
directives with the patient, who denies having one. When Greg
explains to Mrs. Angstrom that he needs to discuss some
confidential matters with her, she asks that Mrs. Finch, who is in
the room visiting, be allowed to stay. “I haven’t been remembering
things lately,” she says, “so I’ll rest easier if Jeanine knows
what’s going on.” Deciding that the patient’s permission is
adequate to continue, Greg explains Mrs. Angstrom’s rights and
options in regard to treatment decisions in the event that she is
unable to make such decisions on her own. Mrs. Angstrom says that
she has no living family members and that the only person she
trusts is Jeanine. “Can I put her in charge of those decisions?”
she asks.
“No,” Greg replies. “I’m sorry, but since Mrs. Finch
is not a family member, she can’t be designated to act on your
behalf. If you don’t have any family member to assign a durable
power of attorney, I think you’ll need to sign a directive to your
physician or agree to a guardianship. If you choose the
guardianship, you can revoke the decision at any time, but the
directive to a physician is binding until you legally have it
changed.”
Has Greg provided accurate information concerning Mrs.
Angstrom’s options for advance directives? If not, what’s wrong
with what he said? What options would be more appropriate to
suggest to her?
Mention at least 4 facts and 4 myth about aging, and
explain one of then.
Read and review chapter 31
Analyze the following case study and answer the
question bellow
CASE STUDY
Mrs. Angstrom is an 83-year-old patient who was
admitted to the hospital after she fell outside her home and broke
her hip. She has been living alone in her apartment since her
husband died 4 years ago. Mrs. Angstrom has no long-term history of
mental illness, but she has recently shown signs of cognitive
impairment and dementia, according to her neighbor Jeanine Finch,
63, who called 911 after Mrs. Angstrom’s fall. “She wanders around
outside sometimes and doesn’t always know how to get back home,”
says Mrs. Finch. “My husband and I try keep an eye out for her, but
we’ve been worried something like this might happen.”
Mrs. Angstrom will need to undergo surgery tomorrow
morning. The nurse on shift, Greg, is new at the hospital and
surprised when the supervising RN asks him to discuss advance
directives with the patient, who denies having one. When Greg
explains to Mrs. Angstrom that he needs to discuss some
confidential matters with her, she asks that Mrs. Finch, who is in
the room visiting, be allowed to stay. “I haven’t been remembering
things lately,” she says, “so I’ll rest easier if Jeanine knows
what’s going on.” Deciding that the patient’s permission is
adequate to continue, Greg explains Mrs. Angstrom’s rights and
options in regard to treatment decisions in the event that she is
unable to make such decisions on her own. Mrs. Angstrom says that
she has no living family members and that the only person she
trusts is Jeanine. “Can I put her in charge of those decisions?”
she asks.
“No,” Greg replies. “I’m sorry, but since Mrs. Finch is not a
family member, she can’t be designated to act on your behalf. If
you don’t have any family member to assign a durable power of
attorney, I think you’ll need to sign a directive to your physician
or agree to a guardianship. If you choose the guardianship, you can
revoke the decision at any time, but the directive to a physician
is binding until you legally have it changed.”
Has Greg provided accurate information concerning Mrs.
Angstrom’s options for advance directives? If not, what’s wrong
with what he said? What options would be more appropriate to
suggest to her?
Mention at least 4 facts and 4 myth about aging, and
explain one of then.
In: Nursing
Suppose the sales in the first year, R, are $100 and they grow every year at a growth rate of g = 10%. Also, suppose that the net margin is 40%. This means that earnings in the first year are going to be 0.4*100 = $40. Assuming that the discount rate, d, is 25%. What is the present value of earnings assuming that the company survives for 10 years?
In: Finance
If a bank account begins the year with a $50 balance, but ends the year with $55, what is the implied annual interest rate?
If interest rates are currently 5% per year, then what is the interest earned on a $200 investment in one year? (Don't enter the dollar sign
In: Finance
If the CPI = 200 this year and rises to CPI = 210 the next year this means that inflation increased by 10%.
In: Economics
A corporation was organized on January 1 of the current year (Year 1), and it is authorized to issue 50,000 shares of Dh100 par, 1% cumulative preferred stock and 250,000 shares of Dh10 par common stock. The following selected transactions were completed during the first year of operations:
|
Jan. 3 |
Issued 15,000 shares of common stock at Dh23 per share for cash. |
|
31 |
Issued 500 shares of Dh10 par common stock at par to an attorney in return for preparing and filing the Articles of Incorporation. The value of the services is Dh8,500. |
|
Feb. 24 |
Issued 1,500 shares of no-par common stock in exchange for an equipment with a fair market price of Dh24,000. |
|
Mar. 15 |
Issued 20,000 shares of preferred stock at Dh115 for cash. |
|
Apr. 16 |
Dh2,000,000 of 10-year, 1% bonds, with interest payable annually, were sold for Dh2,125,000. |
After one year in operations, the following amounts were distributed as dividends:
|
Year 2: |
Dh 9,000 |
|
Year 3: |
10,000 |
|
Year 4: |
50,000 |
Required:
(a) Journalize the entries required on each date.
(b) Determine the dividends per share for preferred and common stock for Years 2, 3, and 4.
In: Accounting
Define what a fiscal year is. Is it the same as a calendar year? What are the steps in QuickBooks for closing a fiscal year? Include at least one online source with your response.
In: Accounting
| XYZ stock price and dividend history are as follows: |
| Year | Beginning-of-Year Price | Dividend Paid at Year-End |
| 2010 | $ 124 | $ 4 |
| 2011 | $ 135 | $ 4 |
| 2012 | $ 115 | $ 4 |
| 2013 | $ 120 | $ 4 |
|
An investor buys six shares of XYZ at the beginning of 2010, buys another two shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013. |
What is the arithmetic average time-weighted rates of return for the investor? (Do not round intermediate
calculations. Enter your answer as a decimal number rounded to four decimal places)
Arithmetic average time-weighted rates of return?
In: Finance